Amgen to buy Tularik for $1.3bn

Tularik, from South San Francisco, a pioneer in drug discovery related to cell signaling and the control of gene expression, will become a wholly-owned subsidiary of Amgen, the world's largest biotechnology company, following agreement over $1.3bn merger talks.

Amgen said that the acquisition 'will combine Amgen's leadership in cellular and molecular biology and medicinal chemistry with Tularik's innovation in gene regulation.' It will also accelerate Amgen's planned expansion into the San Francisco Bay area, a major biotechnology hub. The transaction is expected to close in the second half of 2004.

'Amgen is excited about combining with Tularik, a high-science company that is focused on grievous illnesses and that shares our culture,' said Kevin Sharer, chairman and chief executive officer of Amgen. 'We are particularly pleased to have David Goeddel, a pioneer in biotechnology, join Amgen in a senior role.'

'Tularik's research engine is a rare asset and a great strategic fit. Tularik has a strong team of scientists who share our desire to develop important new therapeutics in inflammation, metabolic diseases and oncology. Amgen and Tularik have complementary chemistry expertise and compound libraries that together strengthen and broaden our discovery capabilities,' said Dr Roger Perlmutter, executive vice president research and development of Amgen. 'David Goeddel has built a great organisation that will be strengthened by Amgen's significant additional resources including capabilities in protein, antibody, and small molecule modalities, development expertise and commercial power.'

Upon the closing of the transaction, Dr Goeddel will become site head of Amgen San Francisco, over-seeing its research projects on an ongoing basis as well as assisting in the strategic direction of Amgen's pipeline.

'Amgen has recognised the value of our employees and our ability to consistently and successfully bring small molecules into the clinic,' said Dr David Goeddel, founder and chief executive officer of Tularik. 'We built Tularik to improve patients' lives through the creation of novel and superior medicines that regulate gene expression. Amgen supports this mission, and the combination will allow Tularik researchers to continue with the additional benefit of access to Amgen's global research, development and commercialisation capabilities.'

As a result of this acquisition Amgen will add Tularik's five novel clinical programs and approximately 300 Tularik research scientists in therapeutic areas of interest. Tularik programs include potential treatments for cancer (hepatocellular, gastric and esophageal) as well as potential treatments for inflammatory diseases, type 2 diabetes and obesity.